Investors moving crypto and digital tokens through crypto exchanges in Thailand had to pay 7% VAT on each transaction. However, a recent decree has enforced a tax break for such transactions starting from 1st April 2022.
Users and investors can take advantage of this tax break, which will promote crypto trade on authorized exchanges. This also allows regulation in crypto transactions, as well as relevant departments such as the Securities and Exchange Commission, to supervise the markets. However, there is a catch.
This VAT break for crypto will be in place in Thailand until December 31, 2023. Thailand’s Finance Minister Arkom Termpittayapaisit believes that the relaxed tax rules will create a more stable and reliable environment for crypto exchanges:
“This would encourage Thailand to have an infrastructure and payment system ready for the future digital economy.”
Ekniti Nititthanprapas, Director-General of the Revenue Department said that investors can conveniently trade crypto now with the tax break and can ensure safe transactions in the region. Moreover, all this will also help Thailand improve its image in the global digital space.
Besides this, another decree came out on May 24 that extends this VAT exemption to transfers with a retail central bank digital currency. Here they are talking about Thailand’s own CBDC which it has planned to test in late 2022.
All this shows that Thailand is embracing the growth of crypto in their region. In fact, crypto investment and trading have gone significantly higher in Thailand over the last few years. In fact, the country’s financial regulator took some steps to restrict crypto for payments.